2012-10-06 19:52:53 - New Financial Services market report from Timetric: "Credit Card Retention Strategies"

The search for innovative card products has been a major focus in the past decade. However, the importance of customer retention for credit card issuers has grown in the wake of the global economic slowdown. The switch towards debit and cash spending in mature markets, the emergence of a range of new payment channels, increase in legislation and the continuing trend for customers to reduce consumption all present significant obstacles to the credit card industry. Credit card issuers in the US took drastic measures during the recession, such as making it harder for consumers to compare credit card offers online and more expensive to transfer balances to other providers. Issuers also cut back their cooperation with comparison sites and raised

fees for balance transfers. While such actions were stop-gap measures, and not necessarily indicative of mature retention strategies, they do attest to the increasing importance being placed on card retention in today's economic climate.


Full Report Details at
- www.fastmr.com/prod/468247_credit_card_retention_strategies.aspx


Key Highlights

* Credit card business normally provides a return of three to four times the cost of equity in markets like the UK and the US.
* Though the profitability of the US credit card industry declined a little during the recession, profitability started showing signs of recovery to pre-recession levels in 2012.
* Credit and debit cards are still used for four out of five payments online, but that share is steadily declining.
* Successful retention strategies encompass an organizational vision including an agreed set of goals to which all components of the credit card organization agree including, profit, and other key metrics.

Scope

* The report illustrates retention strategies for acquisition, portfolio management and anti-attrition segments of the credit card life cycle
* It includes examples of best practice programmes, strategies and channels that have been used to support each phase of the credit life cycle with further analysis of the strategies that worked, the strategies that didn't, and why
* It assesses and recommends which data tools you can use in order to improve retention
* It demonstrates how marketing, customer service and risk management can be better aligned to work together more effectively to enhance retention
* It shows how marketing can be improved, with special emphasis on how better segmentation can yield better results

Reasons to Purchase

* Gain insight into the various credit card retention strategies adopted by issuers across globe
* Measure the success of retention strategies
* Understand the relevance of credit card customer retention
* Develop credit card customer retention strategies and measure ROI for the same
* Understand and develop suitable product and pricing strategies for customer retention

Companies Mentioned in this Report: JPMorgan Chase, Visa International, American Express, PayPal, Bill Me Later, Wells Fargo, Chockstone

Partial Table of Contents:

1 Executive Summary
2 The Significance of the Credit Card Business for Banks
2.1 Profitability of Credit Cards
2.2 Interest Income
2.3 Non-Interest Income
2.4 Fees
2.5 The Importance of Payments in the Customer Relationship
2.6 Country Survey: The UK
3 The Importance of Credit Card Customer Retention
3.1 The Favourable Economics of Customer Retention
3.2 Retention as a Response to Competition and Regulation
3.3 The Impact of Regulation on Card Profitability
3.4 Retention as a Response to Alternative Payment Systems
4 Understanding Customer Retention
4.1 Defining Customer Retention
4.2 Customer Engagement and Retention
4.3 Economic Defection
5 Life-Cycle Management
5.1 The Market Life Cycle
5.2 The Card Life Cycle
6 Setting the Retention Strategy
7 Measuring the Success of the Retention Strategy
8 Understanding Customers
8.1 Customer Segmentation
8.2 Data Mining and Retention Prediction Tools
8.3 Fractal Analytics - Case Study
8.4 Listening to Customers
8.5 JPMorgan Chase's facebook marketing initiative
8.6 The Visa Business Network on Facebook
8.7 American Express - Open Forum
9 Retention and Organisational Structure
10 Retention and Marketing
10.1 Using acquisition to enhance retention
10.2 Using Word-of-Mouth Marketing to Enhance Retention
10.3 Using Branding and PR to Enhance Retention
10.4 Best practices in engaging customers with social media
10.5 Using Rewards and Promotions to Enhance Retention
10.6 Merchant-Funded Rewards
10.7 Payment Information Value Added Services (PIVAS)
10.8 Using Activation and Usage-Stimulation Programmes to Enhance Retention
11 Retention, Product Design and Pricing
11.1 Retention and Product Design
11.2 Personalization and Customization
11.3 Pricing and Retention
12 Retention and Credit Risk Management
13 Retention and Customer Service
13.1 Customer Service and Engagement
13.2 Bank of America - Customer Service on Twitter
13.3 Customer Service and the Mobile Channel
14 Retention and Credit Card Payments
14.1 Customer Retention in POS Credit Card Payments
14.2 Customer Retention for Online Credit Card Payments
15 Appendix
15.1 Methodology
15.2 Contact Us
15.3 About Timetric
15.4 Disclaimer

List of Tables

Full Table of Contents is available at:
-- www.fastmr.com/catalog/product.aspx?productid=468247&dt=t

About Timetric

Timetric is an independent economic and business research firm providing critical intelligence on emerging economies and key global industries. They provide detailed economic and sector intelligence, business insights and authoritative, independent commentary. View more research from Timetric at www.fastmr.com/catalog/publishers.aspx?pubid=1037

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